Are you trading outside the EU or planning to ?

Buying and selling goods outside the EU is often way for business to expand. This is often a new direction for the management of the company so being aware of the rules both in our country and the overseas one is imperative to make that trade a successful. GDC Bookkeeping have clients who have made that step and trade with several countries outside the EU. The bookkeeping is different from UK or EU trade as the VAT on import is recorded on payment and checked to the C88 supplied by the freight forwarding agent. Good value recorded as per the supplier invoice at the appropriate exchange rate if in foreign currency. We as bookkeepers then ensure the VAT is reclaimed correctly in accordance with the C78 certificate issued by HMRC.

This link is to a HMRC Video that simplifies what you need to know if you wish to trade outside of the EU. It give a brief over view of the registrations you need to be compliant with our Tax authorities. The video explains what a EORI number is and how commodity codes are used. The HMRC have other useful videos that give information regarding trading both within the EU and overseas.

However you need to research well in the country you intend to do business with. A good step is contact your Local Chamber of Commerce, www.britishchambers.org.uk will give details of your local chamber who run training courses in import/ export procedures . Also Chambers for specific countries that have contacts to help you trade in there.

If you are currently or looking to trade internationally and need help with recording transactions in bookkeeping system please contact: